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STOCK COMPARISON

Allegro Microsystems Inc vs Nvidia: Fair Value & Quality

Both stocks run through our valuation models. Here is how Allegro Microsystems Inc (ALGM) and Nvidia (NVDA) compare, as of Sep 5, 2026.

As of Sep 5, 2026, Fair Value Calculator sees Nvidia as the less overvalued of the two: Allegro Microsystems Inc trades at $35.56 versus a fair value of $9.72 (-73%), while Nvidia trades at $228 versus $98.98 (-57%).
Allegro Microsystems Inc
ALGM · USD · Information Technology
-73%
upside to fair value
overvalued
Price$35.56
Fair Value$9.72
Quality68/100
Nvidia
NVDA · USD · Information Technology
-57%
upside to fair value
overvalued
Price$228
Fair Value$98.98
Quality74/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Allegro Microsystems IncNvidia
Valuation
P/E (TTM)34.3×
9.86×P/S (TTM)20.16×
9.18×P/B32.48×
83.9×EV/EBITDA30.9×
PEG0.65×
−72.7%Fair value upside−56.7%
Dividend yield0.0%
Dividend per share$0.04
Profitability
10%Operating margin66%
2.29×EBIT margin trend (5Y)2.22×
-2%Return on equity114%
2%Return on assets53%
Growth
26%Revenue growth (YoY)85%
-2.9%Avg. growth/yr (3Y)100.0%
8.5%Avg. growth/yr (5Y)66.9%
Value creation/yr+95.3%
Balance & size
1.3×Interest coverage (EBIT/interest)503.4×
0.30×Debt / equity0.05×
$9BMarket cap$5.1T
weakGrowth qualityhealthy

Nvidia leads: 3 to 9 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Allegro Microsystems Incof which business quality 67 · market factors 29 Nvidiaof which business quality 74 · market factors 56
ProfitabilityMargins and returns on capital today
25
96
Quality GrowthAre margins and returns improving?
91
34
CashflowEarnings quality: real cash, not paper profit
66
81
Fin. StrengthBalance sheet, leverage, solvency risk
67
83
InvestmentDisciplined investing over empire-building
85
32
Low VolatilityCalm price path (market factor)
0
24
MomentumPrice trend over the last 3–12 months (market factor)
42
64
52W MomentumDistance to the 52-week high (market factor)
41
80
Net IssuanceBuybacks instead of dilution
95
91

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyAllegro Microsystems IncPrice $35.56NvidiaPrice $228
DCF Models-78%below the price$7.86-31%below the price$157
Earnings-Based-96%below the price$1.54-35%below the price$148
Dividend Discountn/a-100%below the price$0.77
Multiples-86%below the price$4.87-68%below the price$74.09
Asset-Based-90%below the price$3.44-98%below the price$4.35
Growth DCF-80%below the price$7.25-53%below the price$108
Economic Profit-96%below the price$1.54-54%below the price$106
Growth Earningsn/a-11%close to the price$204
Minimum-96%below the price$1.54-100%below the price$0.77
Maximum-78%below the price$7.86-11%close to the price$204
Median-88%below the price$4.16-53%below the price$107
Geometric mean-90%below the price$3.62-81%below the price$43.69

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Allegro Microsystems Inc: 14 of 14 models see the stock below the current price.

Nvidia: 24 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Allegro Microsystems Inc
Bear $6.98Fair Value $9.72Bull $12.48
$35.56 = current price (white tick)
Nvidia
Bear $64.72Fair Value $98.98Bull $234
$228 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Allegro Microsystems Inc · Information Technology

Quality score68 · Top 25%
Fair value upside-73% · bottom 25%

Nvidia · Information Technology

Quality score74 · Top 25%
Fair value upside-57% · below median

Bottom line

As of Sep 5, 2026, Fair Value Calculator sees Nvidia as the less overvalued of the two: Allegro Microsystems Inc trades at $35.56 versus a fair value of $9.72 (-73%), while Nvidia trades at $228 versus $98.98 (-57%).

Nvidia has the higher quality score (74/100).

See the full analysis →

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.